Gold down on strong US dollar

CHICAGO, Feb 12 (Xinhua): Gold futures on the COMEX division of the New York Mercantile Exchange fell yesterday as the US dollar strengthened on weakness in the euro zone.
The most active gold contract for April delivery fell 12.6 US dollars, or 1.02 per cent, to settle at 1,219.60 dollars per ounce.
Dollar Spot Index, a measure of the dollar against a basket of major currencies, rose by 0.28 per cent to 95.0220, putting pressure on the precious metal. Gold and the dollar typically move in opposite directions, as if the dollar goes up, gold, measured by the dollar, will become more expensive and thus less attractive for investors, which in turn dragged down gold futures.
Analysts said that strength in the dollar could potentially prompt the US Federal Reserve to raise interest rates sooner than expected, putting additional pressure on the price of gold.